Don’t just use AI as a buzzword: Cathie Wood is betting on these three AI stocks apart from NASDAQ stock NVIDIA stock

• Almost every title in ARK’s flagship strategy is said to be involved in the field of artificial intelligence
• Wood relies on companies with domain expertise and unique applied AI
• What makes Zoom, EXACT Sciences and UiPath so promising

Cathie Wood’s AI investments

At the end of September, Cathie Wood spoke about artificial intelligence (AI) in an interview with Morningstar. While the ARK Innovation ETF (ARKK) has performed well this year, some experts believe Wood’s strategy has missed a large part of the artificial intelligence rally. For example, the investors liquidated their stake in NVIDIA. “With our research, we tried to find out who else is going to win in a big way. That’s called true original research, as opposed to checking a box, artificial intelligence, NVIDIA. And we found that the companies that are in this new era will win – and this will impact every industry, every company – are companies with expertise, and when it comes to innovation, that’s really important, especially in areas like multiomics sequencing and life sciences,” explains the investor.

Almost every title in ARK’s flagship strategy is said to be involved in the field of artificial intelligence. In addition, the positions in the portfolio are much cheaper than NVIDIA. ARK Invest not only focuses on using AI as a buzzword, but also relies on companies with domain expertise and unique applied AI that can dominate in these respective domains. During the course of the interview, Wood finally names three AI stocks that she is betting on.

Zoom stock

Wood is probably the most surprising title in the portfolio after Zoom. During the interview, she referred to the then-upcoming Zoomtopia to get a clear idea of ​​how the US software company was using AI. As Investorplace explains, the event took place at the beginning of the month and investors can now see why Wood is betting on Zoom as an AI stock. At Zoomtopia, the company presented a new range of AI-controlled products. Zoom Docs, for example, is a core AI workspace that could emerge as a competitor to Alphabet’s popular Google Docs platform.

But it’s not just Wood who is convinced by Zoom. Investor legend Charlie Munger is also enthusiastic about Zoom, so much so that he even gave the final keynote speech at the event. “I often use Zoom to do business from home. For me it’s very convenient because traveling is difficult. We also have family Zooms and bring the whole family together. Overall, it’s easy, a few buttons “Press to connect,” says Munger.

There’s no denying that Zoom has been an integral part of the growing remote work landscape for quite some time. Zoom’s AI services could have a significant impact on its stock price. Cathie Wood is on a winning path with her position in Zoom so far, and Charlie Munger’s support strengthens the company’s long-term potential as a major player in the AI ​​stocks space, Investorplace explains.

However, analysts are still somewhat cautious about Zoom shares. A total of 23 ratings from Wall Street analysts (6x Buy, 16x Hold, 1x Sell) result in a hold recommendation, as can be seen on the TipRanks platform. The average price target is $82.00, which corresponds to an upside potential of 34.14 percent compared to the last price (as of October 23, 2023).

EXACT Sciences share

Wood also names EXACT Sciences as a promising AI title. The company is a biotech company that is increasingly using AI. According to Investorplace, the AI ​​potential is based in part on an ongoing partnership with OncXerna Therapeutics, a private biotech company. Both companies use OncXerna’s AI-powered platform as an early diagnosis tool for cancer. The platform uses machine learning to match patients’ tumor types with a biologically appropriate treatment tailored to the patient. The platform’s potential is enormous and serves as proof that AI has a bright future in healthcare. There is also a partnership with VieCure, another AI-driven cancer diagnostic platform. The company also aims to “improve clinical workflow and make it easier for community oncologists to order the right tests and create patient-specific treatment plans.”

Just a few weeks ago, according to Investor’s Business Daily, the company reported double-digit sales growth for the sixth quarter in a row, demonstrating its market potential.

And Wall Street experts are also enthusiastic about EXACT Sciences. Thirteen analyst assessments (11x Buy, 2x Hold) result in a “Strong Buy” rating. The average price target is $105.45 and corresponds to an increase of 64.66 percent compared to the last price (as of October 23, 2023).

UiPath stock

Wood also mentions UiPath in the interview as one of the top titles in her portfolio. This is a robotics process automation company. It helps companies automate the most mundane administrative tasks in their business processes. It also has proprietary data linked to many companies around the world and the solutions they develop to automate these everyday processes, including AI.

UiPath’s offerings may hardly seem unusual at first glance, as workplace automation systems have been established for some time in the digital office age, as Investorplace explains. However, a closer look at the numerous case studies conducted by the company illustrates the reason for Wood’s optimistic assessment. UiPath is highly adaptable to a variety of industries, leveraging company or industry-specific data sets. In addition, UiPath can be seamlessly integrated into many leading SaaS products.

The company’s financial strength and growth are also noteworthy. As can be seen from the financial results for the second quarter of the 2024 fiscal year, UiPath was able to increase its sales by a full 19 percent compared to the previous year. The company even increased recurring sales by a full 25 percent, which indicates a satisfied customer base.

Analysts give the UiPath share a moderate buy recommendation. In total, the paper was examined by fourteen Wall Street experts (6x Buy, 8x Hold). The average price target is $19.92, which results in an upside potential of 27.94 percent compared to the last price (as of October 23, 2023).

Editorial team finanzen.net

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